The Travel Insurance Act establishes a comprehensive legal framework for the sale of travel insurance in New Jersey, specifically for policies sold to residents and delivered within the state. It clarifies that cancellation fee waivers and travel assistance services are not covered unless explicitly stated. The Act provides key definitions for terms related to travel insurance and outlines the licensing requirements for limited lines travel insurance producers and travel retailers, emphasizing their responsibilities in consumer information. Travel retailers must be registered and comply with training and disclosure requirements, while travel insurers are required to pay a premium tax and document policyholder residency. The Act also allows travel protection plans to be offered at a single price, ensuring consumers are informed about the components included.

The bill amends existing laws to enhance consumer protection and clarify the responsibilities of insurers and travel administrators. It mandates that consumer-facing documents must accurately reflect the actual policy, particularly regarding pre-existing condition exclusions, and requires timely fulfillment materials after purchase. Consumers are granted the right to cancel their policies for a full refund within specified timeframes, and negative options in the purchase process are prohibited. The bill restricts the role of travel administrators to licensed property and casualty insurance producers or valid managing general agents, removing the allowance for third-party administrators. It also classifies travel insurance under an inland marine line of insurance and empowers the commissioner to adopt regulations for implementation, changing the effective date from 90 days to 180 days post-enactment.